CNG and hybrid cars are preferable to EVs in the medium-term, though EVs score higher in the long-term, according to reports.

According to a study by HSBC Global Research, total carbon emissions from hybrid cars are 16 per cent lower than EVs. The share of non-fossil power in India has to reach 44 per cent for EV emissions to break even with hybrids. "And this may take 7-10 years," said an analyst of the HSBC team.

Total carbon emissions from an EV are currently 158g/km against 133g/km for hybrids. Total emissions include both vehicle emissions ie Tank to Wheel (TTW) and crude mining/refining emissions, and power generation emissions ie Well to Tank (WTT).

The report has only taken into account power generation emissions and not coal production emissions, which would skew the equation further in favour of hybrids.

According to another study by Bloomberg New Economy Forum (BNEF) under the auspices of Bloomberg Finance LP, CNG powertrains in the compact car segment now offer a lower cost of ownership than EVs.

BNEF estimates the ownership cost of CNG cars is 6 per cent lower than similar EVs in 2024.

In the ride-hailing segment, small EVs have the lowest TCO, but CNG cars offer stiff competition. "Most drivers in the ride-hailing segment own their vehicles and may prefer CNG over EVs due to lower upfront costs and a more developed refuelling infrastructure," said a spokesperson of the company.

EV adoption is influenced not just by the total cost of ownership but also by consumer concerns around the resale value of EVs, charging infrastructure and lack of finance, according to the study.

The report says e-buses have a strong economic case for deployment on inter-city routes. "Longer distances favour electric buses over diesel and CNG due to comparatively lower refuelling and maintenance costs," said the spokesperson.

TCO of an e-bus is 26 per cent lower than diesel variant if they cover 250 kilometres in a day. This benefit increases to 31 per cent for 300 kilometres.